I’ve Been Approved for Life Insurance - What Are the Next Steps?
Now that you have been approved for a life insurance policy there are some important things to know. The life insurance carrier that approved you will mail out a life insurance policy directly to you. The policy will outline details about your life insurance coverage. It will tell you the name or type of policy, how long it is good for, a variety of details on how the life insurance policy works and how/when it would pay out to your beneficiaries if you were to pass away. However you applied, whether it was in person, on the phone or online, you want to take note of the life insurance carrier you are applying with.
When you receive the policy you want to be sure to review it and make sure all of your contact information and policy coverage is correct. A life insurance policy is not the most exciting material to read but it is very important to understand the details of your coverage. Remember, you are paying for this protection and you should take the time to read it through.
The next step is to put the policy in a safe place where you know you can find it. I speak with people every day who have either lost their policy or do not know where they put it. Often times they do not know the name of the life insurance company that issued the policy. This can create a stressful situation especially if it was cancelled because a payment was missed. If you end up moving it is very important to contact the insurance company and update your contact information. Also, if you change banks and are paying through monthly electronic bank draft you need to contact the insurance company and provide them your new banking information. If you forget to do this your policy could end up being cancelled due to no payment being received when the insurance carrier tried to draft the money.
Remember that the reason you purchased the life insurance policy is to provide financial security for your beneficiaries in the event you pass away. They need to know a policy exists, what company provided the insurance and how to reach that company to file a claim so they can receive the proceeds. Be prepared is the best way to ensure peace of mind for your family no matter what unexpected events they may have to face in your absence.
About the author: Dan Cody has been in the life insurance business for over 7 years. He loves playing a variety of instruments including the guitar, bass, drums, and piano. He also supports cancer research foundations and volunteers at local pet shelters. Dan enjoys helping customers understand life insurance, so they can find a solid policy that fits their needs. You can reach Dan at 1-800-651-1953 or DCody@Pivot.com.